New York Governor Hochul Opposes Blanket Ban on Non-Compete Agreements

January 16, 2024

On November 30, 2023, Governor Kathy Hochul declined to sign a proposed bill banning the use of non-compete agreements between employers and employees in New York. Expressing concerns about the overbroad nature of the proposed ban, Governor Hochul believes it failed to strike the right balance in safeguarding low and middle-income workers and acknowledging the greater bargaining power of higher-income workers. Instead of endorsing a wholesale ban, Governor Hochul proposed a minimum salary requirement of $250,000 for employees to be subject to such agreements. Based on the Governor’s remarks, it appears that New York may follow the lead of other states like Illinois and Maryland in establishing minimum income thresholds rather than a complete ban on non-competes. Given New York’s significant economy of about $2 trillion, monitoring the state’s next steps will be essential for both employers and employees in the state.

To read how CASTAYBERT PLLC can assist you with employment law matters, click here.